Toyota Production System

Toyota: The Accelerator Crisis
1. Why was Toyota facing a recall crisis?Toyota could not treat this problem adequately. One of the reasons is that because the headquarter in Japan makes all critical decision in Toyota and in this case the place is far from America, Toyota headquarter did not notice the importance of this problem at the early stage. While NHTSA started the investigation at 2009 September, Toyota did not treat this problem seriously. This attitude led NHTSA to reclaim Toyota’s statement of the floor mat problem. If a general manager focusing on the US market, he could understand the situation and spend more time and resources to handle.

The second reason is that Toyota did betray their principles, Toyota Way. At principle 5, you should “build a culture of stopping to fix problems to get quality right the first time.” When you find a problem, you have to scrutinize the reason at least five times. However, in this case it does not seem that Toyota investigate the first case thoroughly. If this case were happened in Japan, I believe that such case would be inspected again and again since all employees have the culture to do so. However, sudden aggressive expansion hindered to disseminate this culture globally, which needs a long time.

According to the case, the Wall Street Journal said that the conflict between founder family and non-family member exacerbated Toyota and the high jacking Toyota by non-family member is the reason that caused the crisis. However, I disagree with the opinion and this was not based on the fact. Actually, Toyota has had a very specific corporate culture, compared with other Japanese global companies. For example, the headquarter exists not in Tokyo but in Nagoya, third biggest city in Japan even if it is more useful and advantageous to have headquarter in Tokyo or Osaka, like most big company does. And also, in no other global big company in Japan, a founder family has influence on the corporate decision making....

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Toyota Motor Corporation is a Japanese multinational corporation, and is considered the world’s largest automaker of automobiles, trucks, buses, robots, and providing financial services. The company adopts a philosophy in terms of its productionsystem, which is named The Toyota Way. Its philosophy in production involves a list of fourteen principles that are implemented in the company, and serve as guides to the operation of the company
Resources
Tangible resources
Financial Resources
Toyota is the largest and the most profitable automobile manufacturer in the world. The company reported annual sales of $202 billion and net profit of $ 2.4 billion in 2010. The company has cash equivalents of $43.3 billion. The huge balance sheet and liquidity allows the company to employ cash easily and also to generate funds from outside.
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Summary of Balanced Scorecard ………………………… 2
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Corporate Strategy………………………………………… 3
Critical Success Factors …………………………………… 4
Competitive Advantage ……………………………………….. 4
Balanced Scorecard ……………………………………………. 5
Recommendation ………………………………………………. 7
Conclusion ……………………………………………….. 7
References ……………………………………………….. 8
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Definition:
Balanced Scorecard (BSC) is a strategic performance tool, which is used by managers to monitor consequences and keep track of the execution of activities. According to Kaplan and Norton “balanced scorecard was designed as a strategic tool and used mainly by the executive of an organization, and might not be relate to the employees at operational levels” (2001). In addition, it gives people “a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals” (Vedd, 2011). BSC is measured by both leading and lagging measurements to either look forward or backward to company’s performance. The full assessment of BSC is done through a series of goals/objectives, mapping/measurements, as well as targets and initiatives.
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* letter "T", which stands for Toyota.
* The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust that is placed between the customer and the company while,
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